McQueen Contracting, Inc., Cross-Appellant v. Fidelity & Deposit Company of Maryland, Cross-Appellee

THORNBERRY, Circuit Judge:

This diversity case involves several questions of Mississippi law. The primary issue is whether a subcontractor is entitled to recover under a performance bond in addition to recovering under a separate, simultaneously executed payment bond. We hold that recovery is limited to the terms of the payment bond and, in doing so, reverse the district court’s ruling on this issue and affirm the judgment in all other respects.

I

This appeal arises from the development of the Westwick Apartment project in Biloxi, Mississippi in the latter part of 1982 and 1983. Hobbit Hill,…